Operating profit rises at Topaz despite slip in sales

Ireland's largest fuel retailer Topaz has reported lower turnover but higher profits for the 12 months to March 2015, according to newly filed accounts.

Turnover declined slightly to €2.8 billion from €2.9 billion in fiscal 2014. However, the group reported operating profits before exceptional costs of €13.2 million. The group said this compared with profits of €10.6 million for the same period a year earlier.

But, in its 2014 accounts, published last February, the directors stated in their report that the group had reported operating profit before exceptional costs in 2014 of €31.9 million.

Exceptional costs at the group over the past couple of years have been attributable to a restructuring of operations after businessman Denis O'Brien assumed control of the company.

That restructuring of Topaz and its debt saw the interest bill fall to €8.1 million last year from €11.7 million the previous year.

At the pre-tax level, the company reported a profit of €2.2 million. In 2014, it had recorded a loss before tax of €4.7 million.

A spokesman for Topaz said that the business was performing very satisfactorily and was seeing the benefits of a substantial investment which has been made over the past 12 months.

Earlier this year, the company announced plans to invest €20 million in a major rebranding programme linked to its takeover of Esso Ireland.

Topaz is paying a reported €70 million to take over 38 Esso service stations and gain the right to supply 60 more in a deal announced last December. The acquisition , which has yet to be completed, would see Topaz taking around 30 per cent of the motor fuels market.

According to the latest company accounts, Topaz had 1,564 employees at the end of March, compared with 1,512 for the preceding year.

The company’s board said it did not recommend the payment of a dividend.

It said that trading in the three-months post year-end was in line with expectations.